Cancer care startup C2i Genomics acquired by Veracyte for up to $95 million
Cancer care startup C2i Genomics acquired by Veracyte for up to $95 million
The Israeli company, which has developed a test platform using whole-genome tumor sequencing, had previously raised $112 million
Israeli startup C2i Genomics is being acquired by cancer diagnostics company Veracyte for up to $95 million. Under the terms of the agreement, Veracyte will pay $70 million in Veracyte shares at closing, and up to an additional $25 million based on the achievement of future performance milestones over the next two years, payable in Veracyte shares or cash at Veracyte’s election. Veracyte had a market cap of around $2 billion at the start of trading on Monday.
C2i Genomics, which has raised a total of $112 million to date, has developed a whole-genome, artificial intelligence-powered approach that generates broad signatures from blood more quickly and efficiently than bespoke panels. The company’s MRD solution requires less than a tube of blood (as little as 3-4 ml blood, or 1-2 ml plasma), can go from sample to result in just two weeks, and delivers improved performance compared to imaging and other molecular tests.
“Our vision has been to provide clinicians with deeper insight into their patients’ cancer so that we can help improve treatment outcomes worldwide,” said Ezra Sofer, chief executive officer and co-founder of C2i Genomics. “Our goal since the inception of the company has been to introduce our robust solution into the clinic. I’m incredibly proud of the progress our team has made and believe that Veracyte, with its strong presence in multiple cancer indications and its powerful commercialization capabilities, will accelerate this vision into a reality.”
Veracyte’s first application of C2i Genomics’ technology will be a muscle-invasive bladder cancer MRD test. The company plans to develop further MRD tests in several of its focused indications.
“MRD detection and monitoring is a large, rapidly growing space that provides critical information to physicians and their patients. The expected acquisition of C2i Genomics will enable us to expand our role across the cancer care continuum to help monitor the success of a therapeutic or surgical intervention, and determine the best course of action for each patient,” said Marc Stapley, Veracyte’s chief executive officer. “We believe that C2i Genomics’ whole-genome technology will enable earlier detection of MRD and recurrence than imaging and other molecular tests, resulting in better patient outcomes, with faster results and smaller sample requirements. This will further fuel our vision to transform cancer care for patients all over the world.”
